Writing checks is not a day-to-day activity, with this, forgetting on how-to is easy. But the process is always simple involving five steps. Follow this guide and you will be able to write your checks with no hurdles.
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Fill the date
Write the date at the top right of your check. In most instances, you will indicate the date of that particular day. But special cases exist as well. You can as well write a future date. This is good when you want to mail the check and ensure that no other person can cash it before its arrival. Determine the nature of the check and fill out an accurate date.
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Add the name of the recipient
Indicate the organization or name of individuals to whom you are directing the check. Make sure to confirm first and write the correct recipient. Write the name on the place saying 'Pay-to-the-order-of'.
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Enter amount
In this case, you have to keep two things in mind: the numerical amount and written amount. Both have to be correct and mean the same thing. Remember, the word value is powerful compared to the numeric. This is because the written amount will be the legally binding part. You can make mistake on the numeric amount but try all you can never go wrong with the written amount. Make sure that you double-check this before writing your check. Another that you would want to know is how to indicate the cents. You can write the whole amount in dollars, and then, "and XX/100". You will indicate the numeric on the right side box. Ensure that you utilize the box well and fill in the amount. Do not leave spaces where frauds can fix additional numerical.
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Sign your check
Sign the check in the right corner bottom. Ensure that the signature info matches the details in your bank account. Without a proper signature, your check will be rendered invalid.
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Add a memo text
Although optional, you can use the memo box and add something. In most cases, you can use it for stuff like social security and account numbers. You can as well use the box to tell the details of the check. Notify your recipient about the check. This will help you in cases of payment issues since you can track down with ease.
Recording a check
A check register accompanies each checkbook so that you can record your written checks. Make sure to record the following in your check register book.
- Date
- Check number
- The Amount
- Deposit of withdrawal
- Transaction description
This information will help you clear any financial mess arising with the bank.
Tips to use when writing your check
Use these tips to ensure your checks are free from errors
Make sure to fix the amount in your mind before writing it. Concentrate on it first and you will never make any mistakes. Keep in mind that there are no such things as editing when it comes to checks.
In case your business transactions involve frequent check writing, buy a checkbook that has carbon copies. With this, you will not have to worry about checks that you did not record on your register. You will have all the complete data.
Avoid using a pencil. Though a rare case, most banks do not accept checks written with a pencil. This also makes you susceptible to fraud since people can edit the amount with ease.
How to void your check
You can decide to void your check after making an error or want to cancel it. The process is straightforward. Use a pen and write the word void in the payee line, amount box, and signature box. In case you had already submitted the check and want to cancel it, contact your bank and deliver your data with the check number. They will help you cancel it.
Writing checks is not a common activity in most organizational transactions. But since you will encounter instances where you have to write checks, it is good to familiarize yourself with the style. The only thing you have to avoid is making mistakes. You cannot edit a check. But you can void it instead. Use the above tips when you want to write your checks.